Q3 2026
Downtown New Orleans Market Snapshot
Key Takeaways RESIDENTIAL MARKET HOLDS STEADY
OFFICE INVESTMENT REMAINS STABLE
DDD began working with the LSU New Orleans Transportation Institute to assess sidewalk and tree well conditions throughout the entire district, including residential areas.
Office rents remained stable as vacancy increased, while new ownership at 909 Poydras and MCBank’s headquarters expansion highlighted continued investment in Downtown office space.
Idea Village named one of TIME's America's Best Incubators & Accelerators while 3 Downtown businesses were listed in the Inc. 500 fastestgrowing American companies.
RETAIL MARKET REPOSITIONING
HOTEL CONDITIONS STRENGTHEN
$1.3B DEVELOPMENT PIPELINE
Rising vacancy and lower asking rents underscored retail challenges, while DDD launched Activate Downtown grants and Canal Street improvements to support storefront activation and reinvestment.
Hotel demand remained nearly level with Q3 2025, while average daily rates increased 6.1% and revenue per available room grew 4.8% despite slightly lower occupancy.
Downtown's development pipeline is supported by $1.3B in projects across construction, entitlement, and planning.
THE INNOVATION ECONOMY
Office ACTIVE DEVELOPMENTS
OFFICE MARKET CONDITIONS Q2 2026
Q3 2026
Change
TOTAL OFFICE SF
17.2M
17.2M
0.0%
CLASS A OFFICE SF
9.0M
9.0M
0.0%
TOTAL VACANCY
12.1%
12.8%
0.7%
CLASS A VACANCY RATE (%)
19.2%
20.5%
AVG ASKING RENT PER SF
$19.70
AVG ASKING RENT PER SF - CLASS A $19.85
2
2
1.3%
Projects Under Construction
Project Entitled
$19.70
0.0%
91,103 SF
503,659 SF
$19.90
0.3%
0
4
Projects Seeking Entitlement
Total Projects
0 SF
594,762 SF
HIGHLIGHTS Overall downtown office vacancy increased to 12.8% in Q3, Class A vacancy increased to 20.5%, while average asking rents remained largely unchanged from Q2. Gayle Benson acquired 909 Poydras (BankPlus Tower). MCBank expanded downtown headquarters at 601 Poydras from 6,700SF to 23,000SF.
Retail
ACTIVE DEVELOPMENTS
RETAIL MARKET CONDITIONS RETAIL - PRIMARY USE (SF)
Q2 2026
Q3 2026
Change
4.0M
4.0M
0.0%
RETAIL - MIXED USE (SF)
1.1M
1.1M
0.0%
TOTAL SF
5.1M
5.1M
0.0%
VACANCY RATE (%)
8.2%
9.4%
1.2%
AVG ASKING RENT PER SF
$24.42
$23.80
-2.5%
4
3
3
Projects Under Construction
Projects Entitled
Projects Seeking Entitlement
17,112 SF
19,766 SF
10,856 SF
10 Total Projects 47,734 SF
NEW OPENINGS NOLA Cat Lounge Johnny's Caribbean Koi Japanese Revolving Sushi
HIGHLIGHTS Retail vacancy rose from 8.2% to 9.4% in Q3, while average asking rent declined to $23.80 per square foot. DDD launched and received applications for Activate Downtown, a new $20K matching grant program inteded to revitalize previously vacant ground-floor spaces. Mayor Helena Moreno’s Canal Street Renaissance Initiative identified DDD as a partner, supporting coordinated efforts to improve infrastructure, and attract new investment along Downtown’s signature commercial corridor. Historic Hibernia Bank Lobby secured a new tenant. Private venue set to build out over 12K SF at 313 Carondelet site.
Hotel & Tourism ACTIVE DEVELOPMENTS
HOTEL MARKET CONDITIONS Q3 2025
Q3 2026
Change
DEMAND (Cumulative Nights) 1,105,461
1,102,094
-0.3%
SUPPLY (Cumulative Nights)
2,175,308
2,195,463
0.9%
ROOM OCCUPANCY (AVG)
50.8%
50.2%
ADR (AVG)
$ 154.55
RevPAR (AVG)
$ 78.54
HIGHLIGHTS
3
3
-0.6%
Projects Under Construction
Project Entitled
$ 163.98
6.1%
639 rooms
164 rooms
$ 82.31
0.048
8
14
Projects Seeking Entitlement
Total Projects
1,260 rooms
2,063 rooms
Downtown hotel ADR increased 6.1% year-over-year to $163.98 in Q3 and RevPAR rose 4.8% to $82.31, despite occupancy easing to 50.2%. Three Downtown hotels earned Michelin Keys: Four Seasons, Ritz-Carlton, and Windsor Court. White Linen Night saw record crowds with 36.6K visits, representing a 13.3% YoY increase in visitation. 518-526 Gravier set for boutique hotel conversion, an adaptive reuse hospitality development to the tune of $4.24M.
Multifamily ACTIVE DEVELOPMENTS
MULTIFAMILY MARKET CONDITIONS Q2 2026
Q3 2026
Change
TOTAL RESIDENTIAL INVENTORY (UNITS)
6,370
6,370
0.0%
AVG RESIDENTIAL VACANCY RATE
7.1%
7.5%
0.4%
AVG PRICE PER UNIT FOR SALE (YTD)
$168,000
$167,000
-0.6%
AVG RENTAL RATE PER UNIT
$2,130
$2,145
0.7%
QUARTERLY ABSORPTION (UNITS)
18
-9
N/A
HIGHLIGHTS Multifamily vacancy edged up to 7.5% and average asking rent increased 0.7% to $2,145 per unit. DDD began Canal Street Phase II enhancements, investing more than $150K in sidewalk repairs, drainage improvements, and ADA upgrades, including reconstruction of the Molly Marine Plaza sidewalk. Charity Hospital redevelopment plans include new residential units alongside Tulane’s expanded Downtown campus, bringing housing, research, retail, and community spaces into the historic building.
4
1
Projects Under Construction
Projects Entitled
43 Units
300 Units
0
5
Projects Seeking Entitlement
Total Projects
0 Units
343 Units
Tech & Innovation ACTIVE DEVELOPMENTS (INSTITUTIONAL)
2
1
0
3
Projects Under Construction
Project Entitled
Project Seeking Entitlement
Total Projects
105,418 SF
484,000 SF
589,418 SF
HIGHLIGHTS
Idea Village named one of TIME's America's Best Incubators & Accelerators. Downtown biotech company Informuta received $1.25 million NSF grant. Three Downtown companies made Inc. 5000 (annual ranking of America’s fastest-growing private companies): The Chopin Law Firm, Scott Vicknair Injury Lawyers, and Rep Data.
Downtown Development Pipeline
29 PROJECTS $245M
$503M
$610M
$1.3B
Under Construction
Entitled
Seeking Entitlement
Total Development